Rajan wants global rules to monitor RBI policies | Reuters

NEW DELHI/MUMBAI Reserve Bank of India (RBI) governor Raghuram Rajan called on Saturday for global central banks to adopt a system for assessing the wider impact of their policies.

He proposed that a group of academics should measure and analyse the "spillover" effects of monetary policies and assign green, orange and red grades to indicate which should be used and which avoided.

The monitoring system could be adopted through an international agreement along the lines of the Bretton Woods currency agreement or through the International Monetary Fund, Rajan said.